If you are looking for an answer to your financial woes without putting your credit score at risk, you must look at settlement loans, also known as structured settlement funding. It is a cash advance on a lawsuit settlement that a person has already own. Do you think there's a catch? No! Structured settlement funding is just like the way it sounds. For more information about it, continue reading.
What Is Structured Settlement Loan?
Most importantly, a structured settlement loan is not really a loan. That's why we prefer to call it structured settlement funding. Let us understand its fundamentals with an example. Suppose you have already won a case. Now you must wait for weeks or even months to get the settled payment.
If you won a structured settlement, you would get periodic small payments over an extended period of time instead of getting lump payment. This kind of tiny amount can be frustrating because all the money is yours, but you are still forced to wait for it. This type of small payment doesn't even cover the necessary expenses, which is ridiculous.
This is where a settlement loan can help. When you opt for this type of funding, you don't have to wait for an extended time to get the total payment because settlement loans will pay you upfront. The best part of getting a settlement loan is that it’s fast and easy to get.
Since the money is already yours, you don't provide any collateral or any other standard loan requirements. Instead, the company will purchase a small part of your total settlement, and in return, they will pay you one big lump sum. Since the process works very fast, you can expect the lump sum payment in your account within one working day.
How Structured Settlement Funding Helps the Society
The structured settlement means the money is yours, but you don't have it in your hand. Instead of getting all the payment at once, you get small, periodic payments. But things don’t always go as planned, and your financial situation might change causing you to require significantly more money.
In a situation like this, structured settlement funding can be a big relief. Companies offering structured settlement loans will buy a part of the entire settlement and give you the equivalent money. This is how funding companies help their clients overcome their financial stress.
Unfortunately, when in need, many people make unwise decisions in order to make some money. But if they have a structured settlement, they can easily borrow money in return. This process is not just legitimate but also a fast and easy way to gather money.
Finally, we would say that settlement loans provide people the money they need to solve their financial issues. In this way, it also prevents them from making poor decisions in order to make some money.
We hope this post on structured settlement loans was informative and useful.
Conclusion - As a consumer or a business owner many things need to be taken care of. Other than the smooth working of the organization there is also a need for planning for the backups. Capital is the main resource and required to be saved for a tough time. Considering many factors structured settlement loans can act as a lifesaver.